Time Warner Profit, Sales Rise Above Expectations

Time Warner Inc. reported on Wednesday a second-quarter profit that rose to $971 million, or $1.16 a share, from $850 million, or 95 cents a share, in the same period a year ago. Excluding non-recurring items, earnings per share came in at $1.25, beating the FactSet consensus of $1.03. Revenue rose 8% to $7.35 billion, above the FactSet consensus of $6.9 billion, with revenue from both the cable and broadcast company's Turner and HBO business rising above expectations. HBO subscription revenue increased 4% to $40 million, boosted by higher domestic rates, while content and other revenue declined 7% to $19 million. The company also affirmed its full-year 2015 adjusted EPS outlook of $4.60 to $4.70. "Our results were led by Turner and Warner Bros., and were achieved at a time when we're investing aggressively to position the company for continued growth, including the successful launch of HBO NOW, our standalone domestic streaming service," said Chief Executive Jeff Bewkes. The stock, which was still inactive in premarket trade, has run up 14% year to date, while the S&P 500 has gained 1.7%.